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Effect of internal controls on the financial performance of deposit taking SACCOs in Kenya

December 31, 2021
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Greener Journal of Economics and Accountancy

Vol. 9(1), pp. 26-34, 2021

ISSN: 2354-2357

Copyright ©2021, the copyright of this article is retained by the author(s)

https://gjournals.org/GJEA

 

  

 

Effect of internal controls on the financial performance of deposit taking SACCOs in Kenya.

*Oduor George Washingtone; Philip Adoyo; Robert Kisavi Mule

Maseno University.

ARTICLE INFO ABSTRACT
 

Article No.: 121321154

Type: Research

Full Text: PDF, PHP

  

The study sought to establish the effect of internal controls on the financial performance of SACCOs in western Kenya. The study was anchored on Economic Value Added and Agency theories. Primary and secondary data was collected and analyzed using correlational research design. Purposive sampling was used to select 120 respondents from a target population of 40 Deposit Taking SACCO’s top management registered by SASRA. The study employed a Census survey technique with a response rate at 93%. Pre-validated questionnaires had a reliability alpha α = 0.903 internal controls and α = 0.873 financial performance internal consistency. Results revealed  = .603, p = .000 indicating that internal controls accounted for 60.3% change in financial performance and has a strong significant contribution to financial performance. The study recommends that SACCOs should prioritize the implementation of internal control systems and improve the audit committees with focus on independence and expertise.
 

Accepted:  20/12/2021

Published: 31/12/2021
 

*Corresponding Author

Oduor George Washingtone

E-mail: sirgeorge200@ yahoo.com
 

Keywords: internal controls, financial performance.
   

 

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Cite this Article: Washingtone OG; Adoyo P; Mule RK (2021). Effect of internal controls on the financial performance of deposit taking SACCOs in Kenya. Greener Journal of Economics and Accountancy, 9(1):26-34

Journal Name : citation_journal : Greener Journal of Economics and Accountancy

Publication Status/Date : usp_status_date : 31/12/2021

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